Trade with Cuba

LuvMycigar.blogspot.com

I was just wondering how the cigar industry in the United States will be changed if at all if trade with Cuba begins to thaw. Will all the producers set up shop there? Will it be a non-event? Will we see an increase in cigar brands available?

benski

You jest, I imagine? Just over half the worldwide cigar production comes out of Cuba - Habanos SA which manages Cuba's cigar output does around 400 Million USD worth of business a year globally from the existing markets (everywhere in the world apart from US). You can bet your bottom dollar that conversation is happening in the backchannels around the market for Cuban cigars potentially doubling in size when (and not if) the embargo comes down. I don't know if the factories have capacity to produce all that extra product (somehow I doubt it - you don't create rollers overnight) - but it will be interesting to see how Cuba copes with the extraordinary leap in demand we are likely to see. Some conjecture: It will start with the conoscenti - those "in the know" - writing articles and full top-down reviews of the various cuban vitolas and brands in the existing marketplace - prior to the embargo being lifted. This will generate interest amongst the second tier (early adopters, curious folk, poseurs). If all goes well - as with Brandy, Champagne, quality Whiskey or other consumable premium items - much of Cuba's output will acquire a premium or super-premium status (to borrow rankings from the Spirits industry). However they will need to retain good QC and find a price point that is tolerable (particularly given the tough market conditions at the moment). Some of the existing inventory will be diverted for the US market whilst production is ramped up. Regular, existing US based smokers who enjoy Cubans (like myself) will pick them up legally, and the entire world will sigh with relaxation as you fondle the embossed band of a beautiful Cohiba robusto, whilst admiring the delicious aroma of these marvellous cigars! Who knows - cigar.com may even have a business development plan that involves speculation on what would happen to their bottom line when trade with Cuba becomes legal. Let's see what happens!

Dude Love

I think the quality will go down, at least for a little while. It'll also be interesting to see the responses by the non-Cuban brands.

betasynn

I think the biggest revelation will be that cubans aren't the holy grail of cigars; I think there will be great ones, good ones, and bad ones, like every other brand.

smbrink

I dont really see why we dont trade with cuba. We trade with China...

Rob1110

Dude Love:

I think the quality will go down, at least for a little while. It'll also be interesting to see the responses by the non-Cuban brands.

Agreed and Beta made a good point as well. People might finally realize that Cuban cigars are not the be-all, end-all of cigars....or, there may just be enough knuckleheads in this country that simply fall for the hype of the forbidden fruit, smoke up what they can, once that gets old, demand will slow down and maybe quality will go back up. It also may be a good thing for us, where non-cuban brands may have to lower prices or simply put out better smokes (maybe start blending with cuban tobacco) to compete.

kuzi16

Rob1110:

Dude Love:

I think the quality will go down, at least for a little while. It'll also be interesting to see the responses by the non-Cuban brands.

Agreed and Beta made a good point as well. People might finally realize that Cuban cigars are not the be-all, end-all of cigars....or, there may just be enough knuckleheads in this country that simply fall for the hype of the forbidden fruit, smoke up what they can, once that gets old, demand will slow down and maybe quality will go back up. It also may be a good thing for us, where non-cuban brands may have to lower prices or simply put out better smokes (maybe start blending with cuban tobacco) to compete.

there are many that think the quality of cuban cigars IS down because of the government run farms. Many of the families left when their farms were taken over by the government.

laker1963

brsmith21

As I'm not old enough to have smoked any real pre-embargo cuban cigars, and my experience with post-embargo cubans is limited, I don't really know how much quality was affected by the government seizure and exodus. That being said, I am very happy with both the quality and variety that is available from the other countries in the region. If the embargo were lifted, I would add the newly available (to me) cuban brands that I haven't tried to the other brands that I am slowly working my way through trying, but in all honesty I appreciate the efforts and blends that are available to me right now and I personally want to support them and would (will) continue to do that. Just my two cents.

gmill880

PuroFreak

I also understand that it isn't so much about the soil, but as the demand for Cuban cigars goes up they tend to try to produce them more quickly and this hurts the aging and fermentation process which in turn hurts the quality of the cigars. Not because the soil is over worked.

gmill880

gmill880

laker1963

gmill880

Scrambler

phobicsquirrel

smbrink

laker1963

phobicsquirrel

lol, isn't it doncha' know...

gmill880

Foodislife

I think it will be more attractive to the Tax Man. This craziness with trying to extract dollars from any crack available is scary. Here in California they have taken all the proposition items that were voted DOWN and simply added them to the new "Budget". We threw out one Gobber because he doubled the car registration "fee" and Arnold just adds it to the budget. When Trade begins with Cuba, a brand new taxable Item comes into view. They will never stop trying, well, not until they win that is.